Nexo Will Discontinue Its Earn Interest Product for US Customers in April

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Last Updated on February 13, 2023 by Bitfinsider

Following a settlement with the United States Securities and Exchange Commission announced last month, crypto lending platform Nexo will discontinue its Earn Interest Product on April 1 for all U.S. consumers, including both citizens and residents.

“We urge that you begin organizing your withdrawal of cash at a convenient time by this date,” the business stated in a blog post, adding that no other Nexo services will be impacted. Clients who owe money will be given “ample time and notice” to repay their debts and remove their collateralized assets.

Non-US consumers who think their accounts have been incorrectly identified must provide updated verification data, such as bank statements or power bills.

Nexo agreed to pay $45 million after the SEC accused it with failing to register the offer and sale of the retail crypto asset loan program, which debuted in the United States in 2020. Nexo consented to an injunction barring it from breaching Securities Act of 1933 registration restrictions without admitting or rejecting the accusations.

The move “reflects our opinion that the establishment of clear legal frameworks is the best approach to protect the crypto sector and shepherd it into the mainstream securely and compliantly,” according to the business.

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